Tech & Gadgets

Ola Electric to launch IPO on August 2 at this valuation

SoftBank-backed Ola Electric’s initial public offering will open to retail investors on August 2, the Indian electric scooter maker said on Saturday. The IPO will value the company at between $4.2 billion and $4.4 billion, two people said.

The offering, which opened a day earlier on Thursday for institutional investors, will close for retail subscriptions on August 6, the latest filing of the IPO prospectus showed. Ola founder Bhavish Aggarwal will sell 37.9 million shares in the IPO, about 20% lower than estimated in the draft IPO prospectus.

Ola’s expected valuation is about 18.5% to 22% lower than its last funding round in September, which was led by Singaporean investment firm Temasek and valued the country’s largest e-scooter maker at $5.4 billion.

“Some prominent investors are being offered the IPO at a valuation lower than the $4.2 billion-$4.4 billion range,” said one of the sources with direct knowledge of the IPO planning.

Ola is planning the IPO at a lower valuation to ensure wider participation from investors willing to bid for the IPO shares, the two sources said.

Ola Electric’s IPO, a first for an Indian electric carmaker, is also one of the largest in India in a year that has seen the country’s stock markets hit multiple record highs, overtaking Hong Kong to become the world’s fourth-largest stock market.

Ola Electric’s new share issue size of 55 billion rupees ($657 million) for the IPO remained unchanged.

© Thomson Reuters 2024

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button